Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — Sparebanken Hedmark — Q3 2016 Earnings Presentation
20 slides from Sparebank 1 Ostlandet's earnings presentation, 2016
Slide 1: Financial results – Q3 2016
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Slide 2: New Sparebanken Hedmark
New Sparebanken Hedmark • Acquisition of Bank 1 Oslo Akershus AS finalised. • Norway’s most solid regional savings bank. • Increased competence, breadth and competitiveness. Unique position as the alliance’s bank in the capital region. • Low risk – very low loan losses and share of problem loans (de
Slide 3: Q3 2016: Good result and rating upgrade to A1
Q3 2016: Good result and rating upgrade to A1 • RoE of 14.6 % and 9.3 % adjusted for extraordinary items. • Profit after tax for the third quarter of NOK 424 million. • Very low losses: Total of NOK 3 million, unchanged group write-downs. • Upgrade to A1 by Moody’s. • Improved net interest margin in
Slide 4: After 3 quarters: Higher margins, low losses, merger on track
After 3 quarters:* Higher margins, low losses, merger on track • Profit after tax of NOK 923 million. • RoE 11.1 % - adjusted for financial items and closure of defined benefit scheme, RoE was 9.3 %. • Loan losses so far in 2016 of NOK 43 million – accounting for less than 0.05 % of lending. • Impro
Slide 5: «New» bank – same values
«New» bank» – same values Local granaries First savings converted, Local savings banks Merger of Joins Acquisition of bank in becoming Hof with central role in savings banks in SpareBank 1 Bank 1 Oslo Norway Sparebank local development Hedmark alliance Akershus IPO 1822 1845 Until 1960 1950-1993 200
Slide 6: New Sparebanken Hedmark – financial goals
New Sparebanken Hedmark – financial goals Norway’s most solid regional savings bank - 16 % CET-1 ratio. - The bank has not recorded an operating losses since the end of WW II. Low risk and transparent business - No oil exposure in the loan book. - 75 % retail share – stable portfolio with high custo
Slide 7: Oil-free loan book and 75 % retail loans
Oil-free loan book and 75 % retail loans The «church spire principle» holds: ‒ 3/4 of the loan book is retail loans. ‒ Well positioned for further growth in Norway’s largest (and still growing) market. ‒ Moody’s: Rated A1. Agriculture is the second largest sector in the corporate loan book, after CR
Slide 8: Largest owners with a long-term perspective
Largest owners with a long-term perspective Long-term ownership perspective • Broad-based agreement of co-operation with the Norwegian Confederation of Trade Unions (LO) • LO and the foundation is represented on the Board Ownership overview per 30 September 2016: • Sparebanken Hedmark Sparebankstift
Slide 9: The foundation – unique for Norwegian savings banks
The foundation – unique for Norwegian savings banks • Largest EC-foundation in Norway, by a clear margin. Unique • Infinite time horizon. • Liquid reserves up to NOK 1.5 billion – and growing. • Will always own at least 50 per cent of the certificates. Long-term • Contribute to improved valuation of
Slide 10: The new savings bank is taking shape
The new savings bank is taking shape Customers • Retail market: Growth based on careful lending primarily to relationship customers and LO-members. • Corporate market: «Church spire principle» maintained, with SME financing. Organisation • No over-lap in the branch network, but merging of support fu
Slide 11: Financial report for Q3 2016
Financial report for Q3 2016 • Q3 is the first reported quarter for the new Group. • Financial results of Bank 1 Oslo Akershus AS for H1-16 have been included in the Group result in accordance with the equity method, with an ownership share of 40.5 per cent. • The balance sheet of Bank 1 Oslo Akersh
Slide 12: Third quarter 2016 – proforma and reported results
Third quarter 2016 – proforma and reported results Bank 1 Oslo Reported Akershus AS Proforma Reported Q3 Q3 2016 Group Q3 2016 Q3 2016 2015 isolated Q3 2016 Net interest income 1.286 1.038 815 442 379 Net commission income 788 507 346 272 423 Other income 146 137 146 37 11 Total operating expenses 1
Slide 13: Main figures for the new bank, Hedmark and Bank 1
Main figures for the new bank, Hedmark and Bank 1* Reported Former Bank 1 Oslo Sparebanken Sparebanken Akershus Third quarter 2016 Proforma * Hedmark Group Hedmark Group** Group Profitability Return on equity capital after tax 11,06 % 10,72 % 11,12 % 11,2 % From the balance sheet Total assets 99.720
Slide 14: The most solid regional savings bank
The most solid regional savings bank - Goal of CET-1 ratio of 16 % has been reached • Leverage ratio: 8,5 % • Tier 1 Capital ratio 30.09.16: 20,2 % • CET 1 Capital Parent bank 30.09.16: 29,9 % 20% 18% 0,3 % 0,7 % 0,2 % 16% 0,4 % 14% 16,9 % 17,2 % 17,5 % 12% 16,2 % 14,8 % 10% 8% 2012 2013 2014 2015 Q
Slide 15: 75 % retail share, 78 % if including agriculture
75 % retail share, 78 % if including agriculture Loan book by sector, incl. covered bond companies Loan book by sector, incl. covered bond companies Commercial Other 3.579 Corporate Primary market Wholesale services 3.953 industries 25,3 % and retail 4.251 trade 1.338 Retail market Building and 74,7
Slide 16: Net interest margin, proforma parent bank
Net interest margin, proforma parent bank –(SH+B1OA), incl. OM and covered bond companies 2,20% 2,18% 2,11% 2,09% 2,10% 2,08% 2,08% 2,06% 2,05% 2,03% 2,02% 2,00% 1,98% 1,98% 1,95% 1,90% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 OM: Organization m
Slide 17: Net interest margin, Proforma Retail/Corporate
Net interest margin, Proforma Retail/Corporate -(SH+B1OA), excl. OM, incl. covered bond companies 2,90% 2,81% 2,71% 2,67% 2,70% 2,52% 2,53% 2,49% 2,48% 2,47% 2,47% 2,50% 2,43% 2,39% 2,34% 2,30% 2,10% 1,95% 1,86% 1,88% 1,88% 1,90% 1,84% 1,85% 1,86% 1,81% 1,83% 1,81% 1,76% 1,77% 1,70% Q4 2013 Q1 2014
Slide 18: Lending margin, Proforma Retail/Corporate
Lending margin, Proforma Retail/Corporate -(SH+B1OA), incl. covered bond companies 3,20% 3,05% 2,99% 3,00% 2,90% 2,89% 2,82% 2,80% 2,71% 2,59% 2,59% 2,62% 2,60% 2,54% 2,55% 2,54% 2,52% 2,52% 2,40% 2,34% 2,28% 2,30% 2,29% 2,20% 2,04% 1,98% 2,00% 1,89% 1,82% 1,78% 1,80% 1,64% 1,60% Q4 2013 Q1 2014 Q2
Slide 19: Deposit margin, Proforma Retail/Corporate
Deposit margin, Proforma Retail/Corporate - (SH+B1OA), excl. OM 0,40% 0,24% 0,20% 0,15% 0,19% 0,11% -0,01% 0,00% 0,08% 0,03% -0,12% -0,06% -0,20% -0,26% -0,17% -0,32% -0,37% -0,35% -0,26% -0,43% -0,40% -0,51% -0,39% -0,56% -0,48% -0,49% -0,60% -0,54% -0,59% -0,67% -0,80% Q4 2013 Q1 2014 Q2 2014 Q3 2
Slide 20: Contacts
Contacts: CEO Richard Heiberg richard.heiberg@sparebanken-hedmark.no CFO Tore-Anstein Dobloug tad@sparebanken-hedmark.no